Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-567-000, Status: Effective

First Revised Sheet No. 586 First Revised Sheet No. 586

Superseding: Original Sheet No. 586

GENERAL TERMS AND CONDITIONS

(continued)

23. TRANSITION COSTS RECOVERY MECHANISM (continued)

billed to Transporter's former sales customers pro rata based on

actual purchases by such customers for the twelve (12) Month

period ending August 31, 1993. Such direct billed amounts shall

be due ten (10) Days after the bills are rendered unless an

amortization period has been mutually agreed to by Transporter and

the affected Shipper(s). To the extent an amortization period is

agreed to, Transporter shall also recover interest on uncollected

amounts in accordance with Section 154.501 of the Commission's

regulations. As out-of-period adjustments from suppliers

attributable to purchases prior to implementation of restructured

services pursuant to Order No. 636 are incurred, the direct

billing mechanism will be adjusted to reflect such adjustment,

subject to receipt of necessary Commission authorization.

Transporter will post unrecovered purchased gas costs to Account

No. 191 for a nine (9) Month period after the effective date of

implementation of Transporter's restructured services pursuant to

FERC Docket No. RS92-3. Transporter shall refund any net

overrecoveries of purchased gas costs attributable to Gas

purchased by Transporter prior to implementation of restructured

services pursuant to Order No. 636. Such overrecovered amounts

shall be refunded, within ninety (90) Days after such

overrecoveries are known and measurable, to Transporter's former

sales customers pro rata based on actual purchases by such

customers for the twelve (12) Month period ending August 31, 1993.

Such refund shall include interest calculated in accordance with

Section 154.501 of the Commission's regulations.

23.2 Gas Supply Realignment Costs.

(a) For purposes hereof, Gas Supply Realignment Costs ("GSR

Costs") are those costs attributable to realigning

Transporter's Gas supply contracts as permitted by Order No.

636, including, but not limited to, (i) costs incurred to

reform or terminate contracts, (ii) costs incurred by

Transporter ("Price Differential GSR Costs") representing

the difference between the contract price under List A and

List B Contracts (i.e.,